Camden National Corporation · NASDAQ:CAC
Camden National — 2016 KBW Financial Institution Conference
27 slides from Camden National's conference presentation, Aug 3, 2016
Slide 1: 2016 KBW Financial Institution Conference
2016 KBW Financial Institution Conference Gregory Dufour | President & Chief Executive Officer Deborah Jordan | Chief Operating & Financial Officer August 3, 2016 0
Slide 2: Forward Looking Statements
Forward Looking Statements 1 This presentation contains certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including certain plans, exceptions, goals, projections, and statements, which ar
Slide 3: Camden National Corporation
Camden National Corporation Camden National Corporation, headquartered in Maine, is a full- service community bank focused on delivering long-term shareholder value through banking, brokerage and wealth management services in Maine, New Hampshire and select markets of New England. 2
Slide 4: Camden National Corporation key facts
Camden National Corporation Headquarters Camden, ME Employees Over 650 Ticker CAC (NASDAQ) Current Price $46.54 52 Week Range $37.23 to $47.49 Avg. Daily Volume 35,595 Assets $3.9 billion Loans $2.6 billion Deposits $2.8 billion Market Cap $448 million Analyst Coverage Piper Jaffrey (overweight) KBW
Slide 5: Focused Priorities: Build Market Share
Focused Priorities Following a strategic plan with three major initiatives: 4 • Organic growth continues to be our #1 priority. • Growth through acquisitions • 2015: Acquired The Bank of Maine (SBM Financial) and $687 million of deposits: o Expanded market opportunity by 202,605 households • 2012: A
Slide 6: Focused Priorities: Create Efficiencies
Focused Priorities Maintain discipline around expense control 5 • Focus on improving Efficiency Ratio • SBM cost savings of $11 million in 2016 • Branch Consolidation • 3 locations (completed by 12/31/16) • 4 locations (2015) • 2 locations (2013) • Divested 5 rural branches (2013) • IT/Support: Inve
Slide 7: Focused Priorities: Expand Business Banking Services
Focused Priorities Strategically positioned for future growth 6 • Geographic • Southern Maine • Southern New Hampshire • Massachusetts • Products & Services • Mortgage Banking • Treasury Management • Business Banking • Technology • Q2 • Apple Pay Expand Business Banking Services 3
Slide 8: Strategic Plan for Growth
Strategic Plan for Growth The Bank of Maine (SBM Financial) • October 2015 – simultaneous close and conversion • Deposits: $687 million • Loans: $615 million • Expansion into high growth Southern Maine market • Widens mortgage banking reach to Massachusetts • Positions bank as the largest community
Slide 9: Financial Highlights – Q2 2016
Financial Highlights – Q2 2016 • Strong earnings performance o Return on tangible equity: 14.50% o Return on assets: 1.01% • Solid growth o Total loans $2.6 billion; 16% annualized growth rate o Total deposits $2.8 billion; 15% annualized growth rate o Fee income reached $10.6 million for the quarte
Slide 10: Loan Mix & Strong Credit Culture
Loan Mix & Strong Credit Culture • Community-based, relationship focused lenders with local decision making • Larger institutional experience (TD Bank, Citizens) to compliment an already strong credit focus • Significant small-business lending driven by unmatched market expertise • Credit quality ra
Slide 11: Deposit Mix & Market Share
Deposit Mix & Market Share 10 Source: SNL Financial. Deposit data as of June 2015. STATE OF MAINE ($ in millions) Rank Instituition Deposits Branches Market Share % 1 Toronto-Dominion Bank $3,309 49 13.3 2 KeyCorp 2,891 51 11.6 3 Camden + SBM 2,668 64 10.7 4 Bangor Bancorp MHC 2,265 60 9.1 5 Bank of
Slide 12: Investments & ALM Position
Investments & ALM Position Interest Rate Risk 11 Estimated Changes In Net Interest Income Year 1 +200bp (2.0)% -100bp (1.3)% Year 2 +200bp 1.3 % -100bp (7.8)% (Assumes flat balance sheet, no change in asset/funding mix and change of rates over 12 month period) MBS 52% Agency CMO 33% Municipals 11% A
Slide 13: Long-Term Shareholder Value
Long-Term Shareholder Value 12 a) 2005 and 2011, special dividend of $0.50 per share. b) The increase in 2015 due to reduction in net income related to merger and acquisition costs of $7.2 million, after tax. c) 2006 issuance of trust preferred and share buyback. Dividends as % of Net Income Cumulat
Slide 14: Total Return
Total Return 13 Source: SNL Financial Strong 15 year return • Stock price appreciation of 135.35% • Average dividend yield of 2.87% -100% -50% 0% 50% 100% 150% 200% 250% 300% Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 271% 141% 110
Slide 15: Peer Analysis
Peer Analysis 14 Camden National Corporation’s peer group consists of the following: Arrow Financial Corporation (AROW), Bar Harbor Bankshares (BHB), Berkshire Hills Bancorp, Inc. (BHLB), Boston Private Financial Holdings, Inc. (BPFH), Brookline Bancorp, Inc. (BRKL), Century Bancorp, Inc. (CNBKA), C
Slide 16: Investment Summary
Investment Summary Experienced Leaders • 25+ years average banking experience and 12 years with CAC Strong Market Share and Brand Recognition • 140 year operating history • 3rd overall deposit market share in Maine(1) • #2 mortgage originator in Maine, with 6.3% of all mortgage originations in the s
Slide 17: Why Invest in Camden National?
Why Invest in Camden National? • Diversified business model creates strong franchise value • Highly experienced management team with track record of solid performance • Geographic footprint expanding into higher growth markets with proven denovo and acquisition history • Strong and stable asset qual
Slide 18: Appendix
amaen NATIONAL CORPORATION Appendix
Slide 19: Seasoned Management Team
Seasoned Management Team 18 Name Position Age Years of Banking Experience Year joined Camden Greg Dufour President and CEO 56 25+ 2001 Debbie Jordan, CPA COO & CFO 50 20+ 2008 Joanne Campbell EVP Risk Management 54 30+ 1996 Carolyn Crosby SVP Human Resources 50 25+ 1996 Edmund Hayden EVP Chief Credi
Slide 20: Financial Highlights: Balance Sheet
Financial Highlights 19 6/30/16 vs. 12/31/15 Change (in million’s) 6/30/16 12/31/15 6/30/15 12/31/14 Loans $2,585 $2,490 4% $1,807 $1,773 Investment Securities 922 856 8% 823 804 Total Assets 3,910 3,709 5% 2,837 2,790 Deposits 2,773 2,726 2% 1,981 1,932 Borrowings 690 572 20% 564 577 Shareholders’
Slide 21: Net Income and Key Ratios
Net Income and Key Ratios Financial Highlights 20 Six Months Ended Year Ended Core (a) GAAP GAAP GAAP GAAP 6/30/16 6/30/16 6/30/15 2015 2014 Net Income (in millions) $18.8 $18.3 $12.8 $21.0 $24.6 Diluted Earnings per Share $1.81 $1.76 $1.71 $2.60 $3.28 Return on Tangible Equity(b) 14.44% 14.04% 13.0
Slide 22: Profitability Trends
Profitability Trends Note: Peer Group defined as publicly traded banks and thrifts headquartered in the United States with total assets between $1.5 billion and $7.0 billion, excluding merger targets. Source: SNL Financial 21 ROAA ROAE Net Interest Margin Efficiency Ratio -0.20% 0.00% 0.20% 0.40% 0.
Slide 23: Historical Credit Metrics
Historical Credit Metrics Note: Peer Group defined as publicly traded banks and thrifts headquartered in the United States with total assets between $1.5 billion and $7.0 billion, excluding merger targets. Source: SNL Financial 22 NPAs / Assets NCOs / Average Loans Loan Loss Reserves / Gross Loans N
Slide 24: Asset Growth
Asset Growth 23 • Successful track record of growing the franchise through combination of organic growth and acquisitions (40% organic growth over 20 year horizon). $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 United Corp. $54 millio
Slide 25: Mortgage Banking Activity
Mortgage Banking Activity • The SBM Financial acquisition positions CAC as the #2 Mortgage Originator in Maine 24 (a) Camden National’s 2015 loan originations include those originated by SBM Financial, Inc. in 2015 prior to the acquisition that closed on October 16, 2015. Source: MRS, Inc. Top 15 Le
Slide 26: Market Overview
Market Overview Maine • Projected 7.57% growth in household income for 2015 to 2020 • Unemployment rate of 3.7% as of June 2016 • Hospitality and tourism generate more than $2 billion in household income annually New Hampshire • Projected 7.57% growth in household income for 2015 to 2020 • Unemploym
Slide 27: Stable Operating Economy
Stable Operating Economy 26 Sources: Bureau of Economic Analysis and Maine State Government Unemployment Rate Per Capital Personal Income 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% Maine United States $30,000 $32,000 $34,000 $36,000 $38,000 $40,000 $42,000 $44,000 $46,000 $48,000
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